How do I issue a refund for a duplicate payment on an invoice?

findjerry · ‎November 21, 2024

I am new to using QBO, so please pardon the newbie question.

I have a client that sent 2 separate checks to pay for the same invoice. I mistakenly deposited the duplicate check into my checking account. When I went to enter the deposit into QBO I realized my error.

The client would like me to write him a refund check in return. How do I go about doing this in QBO? I am a complete newbie, so I need simple advice.

Thanks,

Jerry

AdonL · ‎November 21, 2024

I'm thrilled to have you here today, Jerry. Let's get your customer's overpayment refunded in QuickBooks Online (QBO).

Reimbursing an accidental overpayment from your clients using a Check reduces your bank's balance and offsets the customer's open credit or overpayment. To get you going, here's how:

Go to the +New button.
Under Vendors, select Check.
Select the client you want to refund from the Payee drop-down arrow.
From the Bank Account drop-down menu, choose the bank where you deposited the overpayment.
On the first line of the Category column, select Accounts Receivable.
Enter how much you want to refund in the Amount field.
Fill out the other fields, then hit Save and Close.

You can check out this article for a complete guide to this process: Record a customer refund in QBO

Additionally, I've got these handy resources to help you ensure data inside your company stays accurate.

Thanks for dropping by today, Jerry. Return to this post if you have other questions about handling customer overpayment. I'll get back to respond to them. I'll be here, ready to help you. Take care!

View solution in original post

MAnneJ · ‎November 21, 2024

Thanks for your prompt response, @findjerry. I appreciate you following the steps provided by my colleague. Let me chime in and add this final step to solve your unapplied payments.

After creating the Check in QuickBooks Online, we can follow the steps in the Receive Payment section to offset the Unapplied payment. To do so, follow the steps below:

Go to the +New button.
Click Receive payment under Customers.
On the page, find the customer's name in the dropdown then link the Check created with the overpaid amount.
Scroll down below and check the Unapplied Payment checkbox.
Once done, select Save and close.

receive payment.PNG

After this, you can go to the specific customer and check the status Unapplied changed to Closed.

Moreover, you can also check this article and learn how to put payments into the Undeposited Funds account before you combine them into a deposit: Deposit payments into the Undeposited Funds account in QuickBooks Online.

If you need further assistance with unapplied payments, feel free to post in the Community. I'll be right here to answer. Have a great day ahead.

View solution in original post

AdonL · ‎November 21, 2024

I'm thrilled to have you here today, Jerry. Let's get your customer's overpayment refunded in QuickBooks Online (QBO).

Reimbursing an accidental overpayment from your clients using a Check reduces your bank's balance and offsets the customer's open credit or overpayment. To get you going, here's how:

Go to the +New button.
Under Vendors, select Check.
Select the client you want to refund from the Payee drop-down arrow.
From the Bank Account drop-down menu, choose the bank where you deposited the overpayment.
On the first line of the Category column, select Accounts Receivable.
Enter how much you want to refund in the Amount field.
Fill out the other fields, then hit Save and Close.

You can check out this article for a complete guide to this process: Record a customer refund in QBO

Additionally, I've got these handy resources to help you ensure data inside your company stays accurate.

Thanks for dropping by today, Jerry. Return to this post if you have other questions about handling customer overpayment. I'll get back to respond to them. I'll be here, ready to help you. Take care!

findjerry · ‎November 21, 2024

Thank you @AdonL,

This was very helpful. One final question. The second check, which I recorded as a payment, is "unapplied" under the Status column. Is there a way to fix this? Or do I just leave it as it is?

MariaSoledadG · ‎November 21, 2024

An Unapplied cash payment happens when a payment received from a customer is not allocated to a specific invoice or account balance. I'm here to help you how you can resolve this, Jerry.

You can run the Open Invoices report to locate the invoice for the unapplied payment. To do so, follow the steps below:

Go to the Reports tab.
In the Find report by name field, enter Open Invoices
Set the report period, then select Run report.
In the Transaction Type column, locate a transaction listed as a Payment.

If that Payment transaction matches an open invoice, proceed with the steps below: If you don’t see a matching open invoice, go directly to Step

Select the Payment date to open.
Under Outstanding Transactions, check the open invoice.
Select Save and close.

If the payment doesn’t match an open invoice, you’ll need to create the transaction. Follow these steps:

Select + New.
Under Customers, select Invoice.
Fill out the form with the same customer, amount, and date as the payment.
Select Save and close.
Go back to the Open Invoices report.
Find the unapplied payment, then select the date to open.
Under Outstanding Transactions, check the open invoice.
Select Save and close.
Check your Open invoices report to see if there are any more transactions listed as a Payment. If there are, repeat step 2 for each one.

Once done run your Profit and Loss report. You should no longer see the Unapplied cash payment income.

Additionally, QuickBooks provides several reports that can help you access the data you need. You'll only have to apply the appropriate filters to get the relevant information for your business: Customize Reports in QuickBooks Online.

Let me know if you have any other questions about your customer overpayments. We'll always be right here to help.

findjerry · ‎November 21, 2024

I appreciate your reply, but this doesn't address my question.

MAnneJ · ‎November 21, 2024

Thanks for your prompt response, @findjerry. I appreciate you following the steps provided by my colleague. Let me chime in and add this final step to solve your unapplied payments.

After creating the Check in QuickBooks Online, we can follow the steps in the Receive Payment section to offset the Unapplied payment. To do so, follow the steps below:

Go to the +New button.
Click Receive payment under Customers.
On the page, find the customer's name in the dropdown then link the Check created with the overpaid amount.
Scroll down below and check the Unapplied Payment checkbox.
Once done, select Save and close.

receive payment.PNG

After this, you can go to the specific customer and check the status Unapplied changed to Closed.

Moreover, you can also check this article and learn how to put payments into the Undeposited Funds account before you combine them into a deposit: Deposit payments into the Undeposited Funds account in QuickBooks Online.

If you need further assistance with unapplied payments, feel free to post in the Community. I'll be right here to answer. Have a great day ahead.

findjerry · ‎November 22, 2024

Thank you. The steps outlined below were exactly what I needed to understand the process.

Problem solved!!!

Thanks, gracias, merci, prego, mahalo!!!!

jenop2 · ‎November 22, 2024

You're very welcome, findjerry!

We're delighted to hear that the information we provided about managing customer refunds in QuickBooks Online was helpful to you. Correctly handling financial transactions is crucial for maintaining accurate books.

To further assist you with customer-related tasks in QuickBooks Online, I'd like to share these additional resources:

Don't hesitate to always ask for help in the forum if you need more help, whether you're dealing with payments, refunds, or any other aspect of financial management. We're here to provide prompt and accurate assistance to ensure you can maximize QBO for your bookkeeping.

JH152 · ‎January 16, 2025

When I follow the procedure for "receiving payment" and select the check and unapplied credit, the result is a net zero payment. When I select save and close I receive a red banner error message to "Enter a transaction amount to continue."

Now what? Did I miss something?

JanbonN · ‎January 16, 2025

We appreciate your efforts in following the steps provided by my colleagues, JH152. Let’s work together to resolve this issue.

You're on the right track. A net zero payment in QuickBooks Online (QBO) means that the payment received or applied is equal to the amount owed, effectively closing out the related transaction with no remaining balance.

That said, the steps you followed should save successfully, regardless of the net zero amount. I recommend reviewing the transactions to ensure they are checked and the amounts are accurately matched.

Given the unusual behavior you’re experiencing, we may need to troubleshoot your browser. Start by logging into your QBO account using an incognito or private browsing window. This will enable you to work with a clean slate. Please use these keyboard shortcuts:

Google Chrome: Ctrl + Shift + N
Mozilla Firefox: Ctrl + Shift + P
Microsoft Edge: Ctrl + Shift + N
Safari: Command + Shift + N

Then, please attempt the receive payment procedure again. If it works, clear your browser's cache to remove specific issues and help the program run efficiently. You can also use other devices and supported browsers to ensure everything works as expected.

Moreover, to enhance your QuickBooks experience, consider collaborating with our QuickBooks Live Expert Assisted team. These financial professionals specialize in streamlining processes and providing tailored advice to meet your business's unique needs.

Additionally, you can send your customers statements to show summaries of their invoices, payments, credits, and balances.

Please let us know if you need further assistance with the process, JH152. We're here to help you in any way we can.

Topics

Training

Community

Resources

How do I issue a refund for a duplicate payment on an invoice?